The Transatlantic Trade and Investment Partnership (hereinafter TTIP) is a bilateral free trade agreement affecting the EU and the USA and its goal is to remove tariff, non-tariff barriers and legal processes as well as trade regulations to facilitate and intensify the exchange of goods, services and investment between the two partners. Negotiations started on the 8th of July 2013 in Washington and still go on, as many details, regulations and sectors involved have not been definitely agreed yet. The debate remains, especially in the US, at the governmental level, as most of the US citizens do not even know of its existence. However, in the EU member states, the debate has been on the media for a while now with both, defenders and detractors, using a myriad of economic estimates and scenarios supporting their respective arguments.
If other forms or superregional trade integration forms –with different characteristics and degrees of economic integration- have already been in place in the world since many years ago, the economic size and global influence of the two candidates willing to subscribe this free trade agreement make the TTIP a decisive macro economic zone accounting for approximately 30% of global goods trade, about 40% of the world services, and nearly half of the global GDP.
Table of Contents
1. INTRODUCTION
2. OBJECTIVES
3. US & EU. SOME KEY FIGURES ON THEIR MUTUAL TRADE RELATION
4. INSIGHTS ON THE ECONOMIC FRAMEWORK AND THE NEED FOR TTIP
5. DEGREES OF ECONOMIC INTEGRATION
6. ADVANTAGES AND BENEFITS OF TTIP
6.1. For the EU
6.2. For the US
7. DISADVANTAGES AND RISKS
7.1. For the EU
7.2. For the US
8. CONCLUSION
Objectives and Topics
This paper aims to analyze the necessity, framework, and implications of the Transatlantic Trade and Investment Partnership (TTIP) for both the European and American economies, providing a balanced perspective that moves beyond official political rhetoric to evaluate potential economic outcomes.
- Economic framework and strategic necessity of the TTIP
- Analysis of trade relations and mutual economic benefits
- Comparative assessment of advantages for the EU and the US
- Critical investigation of risks, labor market concerns, and regulatory challenges
Excerpt from the Book
4. INSIGHTS ON THE ECONOMIC FRAMEWORK AND THE NEED FOR TTIP
The EU and the US have always seen each other as commercial partners with shared strategic objectives and over the last decades have jointly sought ways to strengthen their commercial relationship. Proof of this are the historically tight commercial ties between the US and the then European Community dating back to 1953 when the two established their first diplomatic relations which led to the subscription in 1996 of the Transatlantic Declaration (document in which both partners established their first basis for economic cooperation).
Although tariff barriers currently tax only between 4% and 7% of the whole US-EU commercial exchanges, it is the aspiration to the maximum degree of economic liberalization and particularly the existence of the so called NTB which hinder, through regulatory procedures and different production standards, the free circulation of all types of goods and services, which makes the TTIP a desirable agreement. Additional gains and savings could also appear after removing duplicated rules.
When the current economic situation and the effects of the last financial and banking crisis still affect the American and European societies with low or almost non-existent GDP growth rates, price deflation and alarming unemployment rates -especially in Southern Europe-, the TTIP promises some invigorating effects and renewed opportunities for both economies and labor markets that neither the EU nor the US politicians are willing to ignore.
Summary of Chapters
1. INTRODUCTION: Provides an overview of the TTIP as a bilateral trade agreement aimed at removing regulatory and tariff barriers between the EU and the US.
2. OBJECTIVES: Defines the research goal of critically analyzing the TTIP's necessity and potential impacts from both sides of the Atlantic.
3. US & EU. SOME KEY FIGURES ON THEIR MUTUAL TRADE RELATION: Highlights the similarities and economic scale of the two partners, establishing the basis for their mutual trade integration.
4. INSIGHTS ON THE ECONOMIC FRAMEWORK AND THE NEED FOR TTIP: Explores the historical context and economic incentives for strengthening trade ties amidst global competition.
5. DEGREES OF ECONOMIC INTEGRATION: Classifies the TTIP within a seven-stage model of economic integration, ranging from basic preferential trading areas to complete union.
6. ADVANTAGES AND BENEFITS OF TTIP: Details the projected economic growth, job creation, and regulatory efficiencies for both the EU and the US.
7. DISADVANTAGES AND RISKS: Addresses critical concerns regarding labor standards, consumer protection, and the potential dominance of large corporations over regulation.
8. CONCLUSION: Synthesizes the debate, noting that while the potential for economic growth is significant, success depends on addressing the valid concerns of diverse stakeholders.
Keywords
TTIP, Transatlantic Trade and Investment Partnership, European Union, United States, Free Trade Agreement, Economic Integration, Non-Tariff Barriers, Globalization, Trade Policy, Labor Markets, Economic Growth, Regulatory Standards, Consumer Protection.
Frequently Asked Questions
What is the primary subject of this research paper?
The paper examines the Transatlantic Trade and Investment Partnership (TTIP) as a comprehensive bilateral agreement intended to foster economic cooperation between the EU and the US.
What are the core thematic fields covered in the study?
The study focuses on trade policy, macroeconomic impacts, regulatory standardization, labor market implications, and the geopolitical necessity of strengthening transatlantic economic ties.
What is the fundamental goal of the author's analysis?
The goal is to provide a balanced, critical evaluation of the TTIP, allowing readers to form an informed opinion by looking past official political statements.
Which scientific methodology is applied?
The paper employs a comparative qualitative analysis, utilizing economic data and existing studies to weigh the prospective benefits against potential risks for both regions.
What is discussed in the main body of the work?
The main body covers the economic framework of the agreement, its classification in terms of integration, specific advantages and risks for both partners, and sectoral impacts.
Which keywords best characterize the work?
The most relevant keywords include TTIP, economic integration, trade liberalization, non-tariff barriers, global economy, and regulatory convergence.
How does the author view the potential impact of the TTIP on global competitiveness?
The author suggests the TTIP acts as an incentive to strengthen internal economic structures, allowing the US and EU to remain competitive against emerging global powers like the BRICS nations.
What concerns do European citizens typically voice regarding the TTIP?
Concerns mainly focus on a potential reduction in consumer quality standards, environmental protections, and the erosion of labor rights compared to the more regulated European model.
- Citar trabajo
- Santiago Mas (Autor), 2016, TTIP. Its advantages and disadvantages in a globalized world, Múnich, GRIN Verlag, https://www.grin.com/document/437670
